Financial Ratio Analysis: Profitability, Liquidity, Efficiency,

School: Red Rocks Community College - Course: SPA 212 - Subject: Accounting

Financial Ratio AnalysisFill in cells highlighted in yellow - calculations should perform automatically. Ratio A. Profitability Return on Total Assets (ROA)Net Income BIT-1,321,500 Total Assets2,548,700-0.518499630.15Worse Return on Equity (ROE)Net Income BIT-12.05 Equity-12.0510.45Better Return on Sales (ROS)Net Income$9,500 Net Sales195000.75Better Net Profit MarginNet Income$440,000 Sales$440,00010.25Better Gross Profit MarginGross Profit($1,720,000) Sales$2,160,000-0.79629630.45Worse B.Liquidity Current RatioCurrent Assets218700 Current Liabilities1590751.3748231971.55 Worse Quick RatioCash+Mark Sec+Rec10900 (Acid-test ratio)Current Liabilities1590750.0685211381Worse Cash RatioCash+Mark Sec69000 Current Liabilities1590750.4337576610.4Better Net Working CapitalCur Assets218700 Current Liabilities15907559625$25,000 Better C. Efficiency Ratios Receivabled TurnoverNet Credit Sales2,500,000 (2,500,000 in credit sales)Avg. Acc Receivable3750066.6666666713 Better Days Sales Outstanding (DSO)360 Days 360 (will calculate automatically)Rec Turnover66.666666666675.45BetterIndustryAveragePerformance - Better or Worse

Days Inventory Outstanding360 Days 360 (will calculate automatically)Inventory Turnover0.174898785425 2058.33333321 Better D.Leverage Debt RatioTotal Liabilities199,075 Total Assets1.64121387.19510.63Better Equity RatioTotal Equity0 Total Assets100.25Worse Debt to Equity RatioTotal Liabilities159075 Total Equity4290750.3707393811.01Worse Times Interest EarnedNet Income BIT-1803500 Interest Expense2000-901.7535Worse E.Valuation Earnings per ShareNet income19.34 (assume 1000 shares outstand)Preferred Dividends26500 Average Com Shares1000-26.48066$75.00 Worse F.Activity Inventory TurnoverCost of Goods Sold2160000 Inventory123500000.174898785 21 Worse Acc Rec TurnoverCredit Sales2,500,000 (2,500,000 in credit sales)Acc Receiv4000059523.8095213 Better Total Assets TurnoverSales287000 Total Assets25487000.112606427220 Worse